Mylan ($MYL) and its hostile takeover target, Perrigo ($PRGO), have been trading lawsuits in the U.S., but now they've taken their legal battle across the ocean.
Thursday, Perrigo filed a suit against Mylan in Israeli Court alleging that its pursuer failed to publish a lawful tender offer in Israel on Sept. 14, according to The DPost. The Irish drugmaker is seeking a temporary restraining order against Mylan and has requested that an Israeli district court stop the wannabe acquirer from taking any actions within the country related to the tender offer it recently put forth to Perrigo shareholders.
Mylan, for its part, dubbed the lawsuit "meritless," claiming it was "simply a futile attempt to frustrate Perrigo shareholders' ability to participate" in Mylan's offer, which consists of $75 in cash and 2.3 of its shares in return for each Perrigo share.
"Shareholders can participate fully in Mylan's compelling offer without regard to any lawsuits in Israel or any other frustrating actions pursued by Perrigo in Israel," the company noted in a statement, reminding Perrigo's investors that they "have always been free to switch their holdings at any time from the Tel Aviv Stock Exchange to the New York Stock Exchange, through a simple, fully automated, well-established system by notifying their broker."
Whether they'll want to, though, is a different story. Israeli businessman Mori Arkin, for one, said earlier this month that he plans to spurn the offer--and he urged his fellow shareholders to do the same.
"Usually, when a good company is acquired, it is for a significant premium. In our case, it's negligible, if at all," he said.
And he's not the only one who thinks saying no may be a good idea. Valuation is "currently the key factor that will likely preclude Perrigo shareholders from tendering their shares," Citi analysts wrote in a recent note, and with BMO Capital Markets analyst David Maris writing to his own clients that "we believe Perrigo is better off without Mylan."
Meanwhile, both companies have taken the feud to the courts in the U.S. After Perrigo sued last week to block Mylan's proposed takeover, saying the company had misled shareholders, Mylan countersued, alleging its own set of "false and misleading statements."
- get more from The DPost
- read Mylan's release
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